Islamic-Centred Leadership: Qualifying Leaders For Islamic Banks
DOI:
https://doi.org/10.54536/ajiri.v3i4.3558Keywords:
Adl, Amanah, Islamic Banking, Shari’ahAbstract
Islamic banking operates under the principles of Shari’ah law, which governs its financial practices and ethical standards. However, a major challenge facing the industry is the disconnect between the leadership skills required for Islamic banking and those currently in place. In light of this, a research study was conducted to evaluate the alignment between the competencies of leaders in Gulf countries’ Islamic banks and the Shari’ah law’s requirements. The study utilized a qualitative approach, including interviews with eight purposively selected HR managers from various banks in the region. The findings revealed a significant gap between the leadership competencies and the principles of trust and justice emphasized in Shari’ah law. This discrepancy highlights the need for a more thorough assessment of competencies to ensure that they align with the values and goals of Islamic banking. By bridging this gap, Islamic banks can effectively incorporate the principles of Shari’ah law into their leadership competencies and promote a more efficient and successful industry.
Downloads
References
Abbas, M., & Ali, R. (2023). Transformational versus transactional leadership styles and project success: A meta-analytic review. European Management Journal, 41(1), 125-142. https://doi.org/10.1016/j.emj.2021.10.011
Abbasi, A. S. (2020). Shariah Governance Framework for Islamic Banking Institutions (IBIs): A Critical Analysis. Islamic Banking and Finance Review, 7, 1-18. https://doi.org/10.32350/ibfr/2020/0700/1116
Aggarwal, R. K., & Yousef, T. (2000). Islamic banks and investment financing. Journal of money, credit and banking, 93-120. https://doi.org/10.2307/2601094
Ahmed, G. (2019). An analysis of strategic leadership effectiveness of prophet muhammad (pbuh) based on dave ulrich leadership code. Journal of Islamic Studies and Culture, 7(1). http://dx.doi.org/10.15640/jisc.v7n1a2
Alam, M. K., Rahman, M. M., Runy, M. K., Adedeji, B. S., & Hassan, M. F. (2022). The influences of Shariah governance mechanisms on Islamic banks performance and Shariah compliance quality. Asian Journal of Accounting Research, 7(1), 2-16. https://doi.org/10.1108/AJAR-11-2020-0112
Ali, N. A. M., & Kasim, N. (2019). Talent management for Shariah auditors: Case study evidence from the practitioners. International Journal of Financial Research, 10(3), 252-266. https://doi.org/10.5430/ijfr.v10n3p252
Alrowwad, A. a., Abualoush, S. H., & Masa’deh, R. e. (2020). Innovation and intellectual capital as intermediary variables among transformational leadership, transactional leadership, and organizational performance. Journal of Management Development, 39(2), 196-222. https://doi.org/10.1108/JMD-02-2019-0062
Alshater, M., Khan, A., Hassan, M. K., & Paltrinieri, A. (2022). Islamic Banking: Past, Present and Future. Journal of College of Sharia & Islamic Studies, 41, 193-221. https://doi.org/10.29117/jcsis.2023.0351
Altalib, H. (2001). Training guide for Islamic workers. Internationsl Institute of Islamic Thought (IIIT).
Alwi, Z., Parmitasari, R. D. A., & Syariati, A. (2021). An assessment on Islamic banking ethics through some salient points in the prophetic tradition. Heliyon, 7(5). https://doi.org/10.1016/j.heliyon.2021.e07103
Alziyadat, N., & Ahmed, H. (2019). Ethical decision making in Islamic financial institutions in light of Maqasid Al Sharia: A conceptual framework. Thunderbird international business review, 61(5), 707-718. https://doi.org/10.1002/tie.22025
Ariffin, N. M. (2022). Shariah risk management practices in Malaysian islamic banks. International Journal of Economics, Management and Accounting, 30(1), 101-123. https://doi.org/10.31436/ijema.v30i1.924
Arifin, M. (2021). The Influence Of Islamic Law And Economic Principles On Banking Industry In Indonesia. Pt. 2 J. Legal Ethical & Regul. Isses, 24, 1. http://dx.doi.org/10.216022/BBS.16(3).2021.1
Arshad, R., & Sattar, S. (2019). Impact of Islamic Leadership on Islamic Work Ethics: Islamic HR Practices as a Mediating Role in the Islamic Banking Sector of Pakistan. http://dx.doi.org/10.31703/gasr.2019(II-I).05
Ayedh, A. M., Mahyudin, W. A. T., Abdul Samat, M. S., & Muhamad Isa, H. H. (2021). The integration of Shariah compliance in information system of Islamic financial institutions: Qualitative evidence of Malaysia. Qualitative Research in Financial Markets, 13(1), 37-49. https://doi.org/10.1108/QRFM-05-2017-0042
Ayyat, S. J., Abdullah, M. F., & Halim, B. A. (2020). Conceptualising Islamic human resource management principles in the context of Palestine. The Journal of Management Theory and Practice (JMTP), 9-15. https://doi.org/10.37231/jmtp.2020.1.2.21
Aziz, M., Adnan, A., Afthanorhan, A., Foziah, H., Ishak, S.-w., & Rashid, N. (2019). The influence of employer value proposition in talent demand towards talent shortage in the Malaysian Islamic banking institutions: A SEM approach. Management Science Letters, 9(6), 843-850. http://dx.doi.org/10.5267/j.msl.2019.3.004
Aziz, M. I., Hassan, H., Merican, R. M. A. R., Uthamapuhtran, S., Junoh, A. S., & Rahim, M. A. (2021). Talent shortage assessment in Malaysia Islamic banking institution. In: Alareeni, B., Hamdan, A. (eds) Sustainable Finance, Digitalization and the Role of Technology. ICBT 2021. Lecture Notes in Networks and Systems, 487. Springer, Cham. https://doi.org/10.1007/978-3-031-08084-5_63
Belkhaoui, S., Alsagr, N., & van Hemmen, S. F. (2020). Financing modes, risk, efficiency and profitability in Islamic banks: Modeling for the GCC countries. Cogent Economics & Finance, 8(1), 1750258. https://doi.org/10.1080/23322039.2020.1750258
Belouafi, A. (2020). Reforming Islamic Finance Industry: Where from?.. Where To? Journal of King Abdulaziz University, Islamic Economics, 33(2), 121-136. http://dx.doi.org/10.4197/Islec.33-2.9
Chapra, M. U. (1992). Islam and the economic challenge (No. 17). International Institute of Islamic Thought (IIIT).
Deterding, N. M., & Waters, M. C. (2021). Flexible coding of in-depth interviews: A twenty-first-century approach. Sociological methods & research, 50(2), 708-739. https://doi.org/10.1177/0049124118799377
Donkor, F., Sekyere, I., & Oduro, F. A. (2022). Transformational and transactional leadership styles and employee performance in public sector organizations in Africa: A comprehensive analysis in Ghana. Journal of African Business, 23(4), 945-963. https://doi.org/10.1080/15228916.2021.1969191
El-Massah, S. (2020). Islamic Banking Within the UAE’s Multicultural Context: Is it Time for Women-specific Marketing Strategies?
Elwahayshe, N. M. A., & Rosdi, M. S. M. (2024). The Concept of Islamic Leadership Ethics: A Preliminary Study for the Educational Institution Administrators. NATURALISTA CAMPANO, 28(1), 1599-1609.
Fatmawati, D., Ariffin, N. M., Abidin, N. H. Z., & Osman, A. Z. (2022). Shariah governance in Islamic banks: Practices, practitioners and praxis. Global Finance Journal, 51, 100555. https://doi.org/10.1016/j.gfj.2020.100555
Febriani, R., & Sa’diyah, C. (2021). Exploring Islamic Leadership on SME Performance: Mediated by Innovative Work Behavior and Financial Technology. Jurnal Aplikasi Manajemen, 19(3), 495-506. http://dx.doi.org/10.21776/ub.jam.2021.019.03.04
Firdiansyah, F. A. (2021). Optimization Of Human Resources Management In Islamic Banking. JPS (Jurnal Perbankan Syariah), 2(2), 150-164. https://doi.org/10.46367/jps.v2i2.375
Gazi, M. A. I. (2020). Islamic perspective of leadership in management; foundation, traits and principles. International Journal of Management and Accounting, 2(1), 1-9. https://doi.org/10.34104/ijma.020.0109
Gigliotti, R. A. (2019). An introduction to competencies and Competency-based leadership. In Competencies for Effective Leadership (pp. 1-16). Emerald Publishing Limited. https://doi.org/10.1108/978-1-78973-255-920191012
Göçen, A. (2021). Ethical leadership in educational organizations: A cross-cultural study. Turkish Journal of Education, 10(1), 37-57. https://doi.org/10.19128/turje.811919
Gümüsay, A. A. (2019). Embracing religions in moral theories of leadership. Academy of Management Perspectives, 33(3), 292-306. https://doi.org/10.5465/amp.2017.0130
Haddad, A., & Souissi, M. N. (2022). The impact of Shariah Advisory Board characteristics on the financial performance of Islamic banks. Cogent Economics & Finance, 10(1), 2062911. https://doi.org/10.1080/23322039.2022.2062911
Hani, S., Nasution, M. Y., & Siregar, S. (2020). Performance assessment of Islamic banks in the leadership value of the Prophet Muhammad: A conceptual framework. Journal of Islamic, Social, Economics and Development, 10-18.
Hanic, A., & Smolo, E. (2023). Islamic approach to corporate social responsibility: an international model for Islamic banks. International Journal of Islamic and Middle Eastern Finance and Management, 16(1), 175-191. https://doi.org/10.1108/IMEFM-07-2021-0284
Haron, H., Jamil, N. N., & Ramli, N. M. (2020). Western and Islamic values and ethics: Are they different? Journal of Governance and Integrity, 4(1), 12-28. https://doi.org/10.15282/jgi.4.1.2020.5609
Hendijani Fard, M., Asadi Damavandi, A., Mahdilouytazehkandi, A., & Asharin, M. (2021). Leadership and followers’ organizational citizenship behaviour from the Islamic perspective (OCBIP). Journal of Islamic Marketing, 12(6), 1124-1144. https://doi.org/10.1108/JIMA-02-2019-0036
Jan, A., Marimuthu, M., bin Mohd, M. P., & Isa, M. (2019). The nexus of sustainability practices and financial performance: From the perspective of Islamic banking. Journal of Cleaner Production, 228, 703-717. https://doi.org/10.1016/j.jclepro.2019.04.208
Jan, A. A., Lai, F.-W., & Tahir, M. (2021). Developing an Islamic Corporate Governance framework to examine sustainability performance in Islamic Banks and Financial Institutions. Journal of Cleaner Production, 315, 128099. https://doi.org/10.1016/j.jclepro.2021.128099
Janah, N., Medias, F., & Pratiwi, E. K. (2020). The intention of religious leaders to use Islamic banking services: the case of Indonesia. Journal of Islamic Marketing, 12(9), 1786-1800. https://doi.org/10.1108/JIMA-01-2020-0012
Jumady, E. (2020). Implementation of Total Quality Management and Leadership on Islamic Banking Financial Performance. ATESTASI: Jurnal Ilmiah Akuntansi, 3(2), 163-170. https://doi.org/10.57178/atestasi.v3i2.266
Kesto, D. A., & Wolela, A. (2021). Assessment of Leadership Gaps and Challenges in the Adoption of Interest-Free Banking (IFB) in Ethiopia. International Journal on Leadership, 9.
Kothari, C. R. (2004). Research Methodology, Methods and Techniques. New Age International (P) Ltd., Publishers.
Litz, D., & Blaik-Hourani, R. (2020). Transformational leadership and change in education. In Oxford research encyclopedia of education. https://doi.org/10.1093/acrefore/9780190264093.013.631
Mahmod, A. H., Abdullah, M. Y. M., Mokhtar, H., Misra, M. K. A., Aini, Z., & Shahabudin, M. F. R. (2023). Leadership Components of The al-Qalb Dimension from The Perspective of Islamic Leadership: An Analysis of Past Research. The Sultan Alauddin Sulaiman Shah Journal (JSASS), 10(1), 14-25.
Malik, A., Ullah, K., & Ullah, S. (2020). Knowledge Diffusion Process & Common Islamic Banking Governance Principles: Integrative Perspective (s) of Managers and Shariah Scholars. arXiv preprint arXiv:2002.04067.
Maulida, S., & Rusydiana, A. S. (2023). Islamic Human Resource Management: Thematic Map and Research Cluster. Management and Sustainability, 2(1). https://doi.org/10.58968/ms.v2i1.303
Md. Noh, S., Shafii, Z., Marzuki, A., & Abdul Aziz, A. S. (2019, December). Professionalisation of Islamic legacy planning industry in Malaysia: Validation on competency-based certification for Islamic legacy planners. In paper presented at the International Conference on Zakat, Tax, Waqf and Economic Development (ZAWED), 1–2 December.
Mohd Ali, N. A., Shafii, Z., & Shahimi, S. (2020). Competency model for Shari’ah auditors in Islamic banks. Journal of Islamic Accounting and Business Research, 11(2), 377-399. https://doi.org/10.1108/JIABR-09-2016-0106
Mutalib, M. A., Rafiki, A., & Razali, W. M. F. A. W. (2022). Principles and practice of Islamic leadership. Springer.
Na’imah, T., & Muhibbin, A. (2020). Characteristics of Islamic education leadership: Literature review. Technium Soc. Sci. J., 11, 59. https://doi.org/10.47577/tssj.v11i1.1423
Nazir, H., Shoukat, M. H., Elgammal, I., & Hussain, S. (2022). Impact of servant leadership on employee life satisfaction through Islamic work ethics in the Islamic banking industry. Asian Journal of Business Ethics, 11(1), 137-157. https://doi.org/10.1007/s13520-022-00144-3
Omar, M. F. H. M., & Ismail, S. H. S. (2022). Servant Leadership in Malaysian Da’wah NGOS: Western and Islamic Perspective. Abqari Journal, 26(1), 1-18. https://doi.org/10.33102/abqari.vol26no1.446
Qizam, I. (2020). Identifying a Convergence between Non-Financial Information and Islamic Accounting for Islamic Decision Usefulness: A Review and Synthesis. Global Review of Islamic Economics and Business, 8(2), 059-076. https://doi.org/10.14421/grieb.2020.082-01
Rafiki, A. (2020). Islamic leadership: Comparisons and qualities. Digital Leadership-A New Leadership Style for the 21st Century, 1-16.
Rahim, M., Nawi, N., Bakar, N., & Daud, W. (2019). The implementation of islamic leadership attributes in Malaysian shariah compliant investment organizations: A case study. International Journal of Innovation, Creativity and Change, 7(10), 76-101. https://doi.org/10.47252/teniat.v6i2.197
Raja, U., Haq, I. U., De Clercq, D., & Azeem, M. U. (2020). When ethics create misfit: Combined effects of despotic leadership and Islamic work ethic on job performance, job satisfaction, and psychological well being. International Journal of Psychology, 55(3), 332-341. https://doi.org/10.1002/ijop.12606
Salamun, H., & Ab Rahman, A. (2022). Leadership values and understandings from an Islamic perspective. In Leadership in a changing world-a multidimensional perspective. IntechOpen.
Satria, B., & Yuliansyah, Y. (2020). The Influence of Islamic Organizatinal Culture on Performace with Management Accounting Systems as Mediating Variable. International Journal of Advanced Science and Technology, 29(02), 2128-2150. http://sersc.org/journals/index.php/IJAST/article/view/3632
Sava, D., & Valery, S. (2019). Risk management in dual banking systems: islamic ethical and conventional banking. Review of Business and Economics Studies(4), 6-12. https://doi.org/10.26794/2308-944X-2019-7-4-6-12
Senam, M. R., & Zaini, R. M. (2023). Malaysian River Project Management with Maslahah from the Technical Department Perspective. Journal of Water Resources Management, 1(1).
Shahzad, M. A., Ehsan, A., Ayaz, M., & Iqbal, H. R. (2021). The Competency of Shartah Auditors in Islamic Banking Institutions: An Analytical Study. COMSATS Journal of Islamic Finance (CJIF), 6(2). http://dx.doi.org/10.26652/cjif.6202121
Shamsudheen, S. V., Rosly, S. A., & Muneeza, A. (2023). Assessing ethical praxis of ethical (Islamic) financial institutions: a survey of empirical discoveries. International Journal of Law and Management, 65(5), 440-460. https://doi.org/10.1108/IJLMA-11-2022-0256
Sidani, Y. M. (2023). Ethics and Leadership in Islam Between Universalist Principles and Utilitarian Ends. What Makes a Balanced Leader? An Islamic Perspective, 3, 31. https://doi.org/10.1515/9783110743395
Suandi, E., Herri, H., Yulihasri, Y., & Syafrizal, S. (2023). An empirical investigation of Islamic marketing ethics and convergence marketing as key factors in the improvement of Islamic banks performance. Journal of Islamic Marketing, 14(6), 1438-1462. https://doi.org/10.1108/JIMA-07-2021-0225
Turner, J. R., Baker, R., Schroeder, J., Johnson, K. R., & Chung, C.-H. (2019). The global leadership capacity wheel: Comparing HRD leadership literature with research from global and indigenous leadership. European Journal of Training and Development, 43(1/2), 105-131. https://doi.org/10.1108/EJTD-07-2018-0061
Ul-Haq, S., Lone, R. A., & Ashraf, N. (2022). A theory of capitalist co-optation of radical alternatives: The case of Islamic banking industry. Organization, 29(1), 129-154. https://doi.org/10.1177/1350508420939245
Umar, A., & Maina, M. (2019). The Application of Islamic Concept of Accountability in Leadership: A Means for Sustainable Development in Nigeria. Glob Acad J Humanit. Soc. Sci., 1, 38-43. https://doi.org/10.36348/gajhss.2019.v01i01.007
Usman, M., Harmen, H., Rakhmawati, L., Farid, F., & Suryani, A. I. (2023). The Role of Islamic Leadership in Vitalizing High Morale in the Workplace. Journal of International Business, Economics and Entrepreneurship, 8(2), 32-32. https://doi.org/10.24191/jibe.v8i2.22950
Vashdi, D. R., Levitats, Z. S., & Grimland, S. (2019). Which transformational leadership behaviors relate to organizational learning processes? The Learning Organization, 26(2), 176-189. https://doi.org/10.1108/TLO-04-2018-0065
Vogel, F. E., & Hayes, S. L. (1998). Islamic law and finance: Religion, risk, and return (Vol. 16). Brill.
Yasmeen, K. (2024). Framework for Islamic social entrepreneurship. Journal of Islamic Accounting and Business Research. https://doi.org/10.1108/JIABR-08-2023-0256
Zaim, H., Erzurum, E., Zaim, S., Uluyol, B., & Seçgin, G. (2024). The influence of Islamic leadership on work performance in service industry: an empirical analysis. International Journal of Ethics and Systems, 40(1), 127-152. https://doi.org/10.1108/IJOES-12-2021-0242
Zulkifli, Z., Purwati, A. A., Renaldo, N., Hamzah, Z., & Hamzah, M. L. (2023). Employee performance of Sharia Bank in Indonesia : The mediation of organizational innovation and knowledge sharing. Cogent Business & Management, 10(3), 2273609. https://doi.org/10.1080/23311975.2023.2273609
Downloads
Published
Issue
Section
License
Copyright (c) 2024 Khamis Ahmed Abdullah
This work is licensed under a Creative Commons Attribution 4.0 International License.
